Lennox to Divest Service Experts Unit; Reaffirms FY12 EPS Expectations
Lennox International Inc. today announced plans to divest its Service Experts business, which consists of dealer-contractors providing heating and cooling equipment installation and service primarily to the residential market. The company will retain the commercial service business called Lennox National Account Services that was reported within its Service Experts business segment. Revenue for the Service Experts business segment was $529 million in 2011, $80 million of which was from the NAS business. The company expects to report the non-NAS Service Experts business in discontinued operations beginning with the third quarter of 2012. NAS will be reported under the company's Commercial Heating & Cooling business segment. The company will provide current and historical financial results adjusted for discontinued operations and the move of NAS to the Commercial segment at the time of the third quarter 2012 earnings release on October 22, 2012.
Lennox International reiterates its 2012 guidance range of $2.35-$2.65 for adjusted EPS, and $2.30-$2.60 for GAAP EPS, both from continuing operations as previously defined at the time of the second quarter 2012 earnings announcement and before the effect of the move of Service Experts to discontinued operations. GAAP net income, which includes discontinued operations, will be impacted through the divestiture process.